Ethereum Price Breakout Signals Potential Rally to $3,500
The price of Ethereum (ETH), the second-largest cryptocurrency in the world, has experienced a strong breakout, surging 6% and surpassing the $2,600 level. This recent rally has extended ETH’s weekly gains to over 15%, leading analysts to believe that a rally to $3,500 is on the horizon.
Analysis of Ethereum’s Price Movement
Since June 2022, Ethereum has been on an upward trajectory, marked by the creation of two higher lows. The pace of increase has accelerated after each low. In November 2023, the price broke out from a long-standing horizontal resistance level and reached a peak of $2,717 in January 2024, surpassing the 0.382 Fibonacci retracement resistance level.
Although there was a brief decline afterward, ETH managed to rise above the Fibonacci resistance last week. The weekly Relative Strength Index (RSI) presents a mixed picture. An RSI reading above 50 with an upward trend signals an advantage for bulls, whereas a reading below 50 indicates the opposite.
Race for Spot Ethereum ETF Intensifies
Despite no indication from the SEC about approving a spot Ethereum ETF, major financial players like Franklin Templeton, BlackRock, and Ark Invest are pushing forward with their filings. Franklin Templeton recently filed for a spot Ether ETF that aims to simplify the process of investing in Ethereum and incorporates staking to earn rewards through network participation.
In addition to this development, Ethereum staking has seen increased participation, providing added security to the blockchain network. However, staking rates have been relatively low compared to other investment options.
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